GAAP net income increased by 21.7% to $43.2 million compared to $35.5
million for Q4 2015.

Quarterly Adjusted EBITDA(4) increased 16.4% to $116.5
million compared to $100.1 million for Q4 2015.

j2 ended the quarter with approximately $124.0 million in cash and
investments after deploying approximately $508.2 million during the
quarter for acquisitions and the payment of j2's regular quarterly
dividend.

Key financial results for Q4 2016 versus Q4 2015 are set forth in the
following table (in millions, except per share amounts). Reconciliations
of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and
free cash flow to their nearest comparable GAAP financial measures are
attached to this Press Release.

Q4 2016

Q4 2015

% Change

Revenues

Cloud Services

$141.8 million

$133.8 million

6.0%

Digital Media

$108.8 million

$69.9 million

55.7%

IP Licensing

$1.2 million

$1.1 million

9.1%

Total Revenue:

$251.8 million

$204.8 million

22.9%

Operating Income

$68.2 million

$53.1 million

28.4%

Net Cash Provided by Operating Activities

$89.8 million

$80.5 million

11.6%

Free Cash Flow (1)

$82.7 million

$75.1 million

10.1%

GAAP Earnings per Diluted Share (2)

$0.89

$0.72

23.6%

Adjusted Non-GAAP Earnings per Diluted Share (2) (3)

$1.49

$1.29

15.5%

GAAP Net Income

$43.2 million

$35.5 million

21.7%

Non-GAAP Net Income

$72.2 million

$63.1 million

14.4%

Adjusted EBITDA (4)

$116.5 million

$100.1 million

16.4%

Adjusted EBITDA Margin (4)

46.3%

48.9%

(2.6)%

FULL YEAR 2016 RESULTS

2016 revenues increased 21.3% to a record of $874.3 million compared to
$720.8 million for 2015.

Net cash provided by operating activities increased by 23.3% to $282.4
million compared to $229.1 millionfor 2015.2016 free
cash flow(1) increased by 16.4% to $259.9 million compared to
$223.2 million for 2015.

GAAP earnings per diluted share(5) increased 14.7% to $3.13
in 2016 compared to $2.73 for 2015. Adjusted non-GAAP earnings per
diluted share(5)(6) for the year increased 19.7% to $4.99
compared to $4.17 for 2015.

GAAP net income increased by 14.1% to $152.4 million compared to $133.6
million for 2015.

Annual Adjusted EBITDA(4) increased 18.8% to $396.1 million
compared to $333.3 million for 2015.

j2 ended the year with approximately $124.0 million in cash and
investments after deploying approximately $719.4 million during the year
with respect to the repurchase of approximately 935,000 shares of j2
common stock, twenty-two acquisitions and j2's regular quarterly
dividends.

Key financial results for 2016 versus 2015 are set forth in the
following table (in millions, except per share amounts). Reconciliations
of Adjusted non-GAAP earnings per diluted share, Adjusted EBITDA and
free cash flow to their nearest comparable GAAP financial measures are
attached to this Press Release.

2016

2015

% Change

Revenues

Cloud Services

$562.4 million

$498.9 million

12.7%

Digital Media

$307.3 million

$216.1 million

42.2%

IP Licensing

$4.6 million

$5.8 million

(20.7)%

Total Revenue:

$874.3 million

$720.8 million

21.3%

Operating Income

$242.6 million

$199.4 million

21.7%

Net Cash Provided by Operating Activities

$282.4 million

$229.1 million

23.3%

Free Cash Flow (1)

$259.9 million

$223.2 million

16.4%

GAAP Earnings per Diluted Share (5)

$3.13

$2.73

14.7%

Adjusted Non-GAAP Earnings per Diluted Share (5) (6)

$4.99

$4.17

19.7%

GAAP Net Income

$152.4 million

$133.6 million

14.1%

Non-GAAP Net Income

$243.9 million

$203.0 million

20.1%

Adjusted EBITDA (4)

$396.1 million

$333.3 million

18.8%

Adjusted EBITDA Margin (4)

45.3%

46.2%

(0.9)%

"2016 was a remarkable year," said Hemi Zucker, CEO of j2 Global. "We
exceeded our revenue expectations and achieved the high end of our EPS
range. Fueled by our acquisition of Everyday Health, our largest ever,
we are forecasting more than $1.1 billion in revenue, balanced between
our Cloud and Media segments for this year. We are very excited about
2017 and are focused on our execution strength and planning for
continued growth."

BUSINESS OUTLOOK

For fiscal 2017, the Company estimates that it will achieve revenues
between $1.130 and $1.170 billion and Adjusted non-GAAP earnings per
diluted share of between $5.60 and $6.00.

Adjusted non-GAAP earnings per diluted share for 2017 excludes
share-based compensation of between $14 and $16 million, amortization of
acquired intangibles and the impact of any currently unanticipated
items, in each case net of tax.

It is anticipated that the non-GAAP effective tax rate for 2017
(exclusive of the release of reserves for uncertain tax positions) will
be between 28.5% and 30.5%.

The Company has not reconciled the Adjusted non-GAAP earnings per
diluted share and tax rate guidance included in this release to the most
directly comparable GAAP measure because this cannot be done without
unreasonable effort due to the variability with respect to costs related
to acquisitions and taxation, which are potential adjustments to future
earnings. We expect the variability of these items to have a potentially
unpredictable and significant impact on our future GAAP financial
results.

DIVIDEND

j2's Board of Directors has approved a quarterly cash dividend of
$0.3650 per common share, a $0.01, or 2.8% increase versus last
quarter's dividend. This is j2's twenty-second consecutive quarterly
dividend increase since its first quarterly dividend in September
2011. The dividend will be paid on March 9, 2017 to all shareholders of
record as of the close of business on February 22, 2017. Future
dividends will be subject to Board approval.

EXTENSION OF SHARE REPURCHASE PROGRAM

The Company has extended its one-year five million share repurchase
program set to expire February 20, 2017 by an additional year.
Approximately 1.9 million shares remain available for purchase under the
program.

Notes:

(1)

Free cash flow is defined as net cash provided by operating
activities, less purchases of property, plant and equipment, plus
excess tax benefit from share-based compensation. Free cash flow
amounts are not meant as a substitute for GAAP, but are solely for
informational purposes.

(2)

The estimated GAAP effective tax rates were approximately 25.8% for
Q4 2016 and 16.4% for Q4 2015. The estimated Adjusted non-GAAP
effective tax rates were approximately 29.0% for Q4 2016 and 27.6%
for Q4 2015.

Adjusted EBITDA is defined as earnings before interest and other
expense, net; income tax expense; depreciation and amortization; and
the items used to reconcile EPS to Adjusted non-GAAP EPS referred to
in Note (3) above. Adjusted EBITDA amounts are not meant as a
substitute for GAAP, but are solely for informational purposes.

(5)

The estimated GAAP effective tax rates were approximately 27.9% for
2016 and 14.8% for 2015. The estimated Adjusted non-GAAP effective
tax rates were approximately 28.8% for 2016 and 28.4% for 2015.

"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995: Certain statements in this Press Release are
"forward-looking statements" within the meaning of The Private
Securities Litigation Reform Act of 1995, particularly those contained
in Hemi Zucker's quote and the "Business Outlook" portion regarding the
Company's expected fiscal 2017 financial performance. These
forward-looking statements are based on management's current
expectations or beliefs and are subject to numerous assumptions, risks
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These factors
and uncertainties include, among other items: the Company's ability to
grow non-fax revenues, profitability and cash flows; the Company's
ability to identify, close and successfully transition acquisitions;
subscriber growth and retention; variability of the Company's revenue
based on changing conditions in particular industries and the economy
generally; protection of the Company's proprietary technology or
infringement by the Company of intellectual property of others; the risk
of adverse changes in the U.S. or international regulatory environments,
including but not limited to the imposition or increase of taxes or
regulatory-related fees; and the numerous other factors set forth in j2
Global's filings with the Securities and Exchange Commission ("SEC").
For a more detailed description of the risk factors and uncertainties
affecting j2 Global, refer to the 2015 Annual Report on Form 10-K filed
by j2 Global on February 29, 2016, and the other reports filed by j2
Global from time-to-time with the SEC, each of which is available at www.sec.gov.
The forward-looking statements provided in this press release and
particularly those contained in Hemi Zucker's quote and the "Business
Outlook" portion regarding the Company's expected fiscal 2017 financial
performance are based on limited information available to the Company at
this time, which is subject to change. Although management's
expectations may change after the date of this press release, the
Company undertakes no obligation to revise or update these statements.

About non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following Adjusted
non-GAAP financial measures: Adjusted non-GAAP net income, Adjusted
non-GAAP earnings per diluted share, Adjusted EBITDA and free cash flow.
The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.

We use these Adjusted non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate period-to-period
comparisons. Our management believes that these Adjusted non-GAAP
financial measures provide meaningful supplemental information regarding
our performance and liquidity by excluding certain expenses and
expenditures that may not be indicative of our recurring core business
operating results. We believe that both management and investors benefit
from referring to these Adjusted non-GAAP financial measures in
assessing our performance and when planning, forecasting, and analyzing
future periods. These Adjusted non-GAAP financial measures also
facilitate management's internal comparisons to our historical
performance and liquidity. We believe these Adjusted non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they are used by our
institutional investors and the analyst community to help them analyze
the health of our business.

For more information on these Adjusted non-GAAP financial measures,
please see the appropriate GAAP to Adjusted non-GAAP reconciliation
tables included within the attached Exhibit to this release.

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

December 31, 2016

December 31, 2015

ASSETS

Cash and cash equivalents

$

123,950

$

255,530

Short-term investments

60

79,655

Accounts receivable, net of allowances of $7,988 and $4,261,
respectively

Non-GAAP net income is GAAP net income with the following
modifications, net of tax: (1) elimination of share-based
compensation and the associated payroll tax expense; (2) elimination
of certain acquisition-related integration costs; (3) elimination of
interest costs in excess of the coupon rate associated with the
convertible notes; (4) elimination of amortization of patents and
intangible assets that we acquired; (5) elimination of additional
tax or indirect tax related benefit from prior years; (6) sale of
investments; (7) IRS consulting fee; and (8) dilutive effect of the
convertible debt.

Three Months Ended December 31,

2016

Per Diluted Share *

2015

Per Diluted Share *

Net income

$

43,158

$

0.89

$

35,467

$

0.72

Plus:

Share based compensation (1)

1,366

0.03

1,842

0.04

Acquisition related integration costs (2)

8,788

0.18

9,578

0.20

Interest costs (3)

(850

)

(0.02

)

1,399

0.03

Amortization (4)

21,316

0.45

18,581

0.39

Tax benefit from prior years (5)

(1,574

)

(0.03

)

(3,770

)

(0.08

)

Convertible debt dilution (8)

—

0.01

—

0.01

Adjusted non-GAAP net income

$

72,204

$

1.49

$

63,097

$

1.29

Twelve Months Ended December 31,

2016

Per Diluted Share *

2015

Per Diluted Share *

Net income

$

152,439

$

3.13

$

133,636

$

2.73

Plus:

Share based compensation (1)

8,598

0.18

8,413

0.18

Acquisition related integration costs (2)

12,564

0.26

16,568

0.35

Interest costs (3)

3,467

0.07

5,511

0.12

Amortization (4)

73,022

1.53

55,606

1.16

Tax benefit from prior years (5)

(1,520

)

(0.03

)

(16,558

)

(0.35

)

Sale of investments (6)

(4,675

)

(0.10

)

—

—

IRS consulting fee (7)

—

—

(157

)

—

Convertible debt dilution (8)

—

0.01

—

0.01

Adjusted non-GAAP net income

$

243,895

$

4.99

$

203,019

$

4.17

* The reconciliation of net income per share from GAAP to
Adjusted non-GAAP may not foot since each is calculated independently.

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

THREE MONTHS ENDED DECEMBER 31, 2016 AND 2015

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Non-GAAP net income is GAAP net income with the following
modifications: (1) elimination of share-based compensation and the
associated payroll tax expense; (2) elimination of certain
acquisition-related integration costs; (3) elimination of interest
costs in excess of the coupon rate associated with the convertible
notes; (4) elimination of amortization of patents and intangible
assets that we acquired; and (5) elimination of additional tax or
indirect tax related (expense) benefit from prior years.

Three Months Ended December 31,

2016

2015

Cost of revenues

$

40,229

$

34,608

Plus:

Share based compensation (1)

(123

)

(100

)

Acquisition related integration costs (2)

—

(327

)

Amortization (4)

(1,490

)

(1,314

)

Adjusted non-GAAP cost of revenues

$

38,616

$

32,867

Sales and marketing

$

63,717

$

42,189

Plus:

Share based compensation (1)

(393

)

(624

)

Acquisition related integration costs (2)

(4,327

)

(395

)

Adjusted non-GAAP sales and marketing

$

58,997

$

41,170

Research, Development and Engineering

$

10,881

$

8,625

Plus:

Share based compensation (1)

(240

)

(229

)

Acquisition related integration costs (2)

(947

)

(1

)

Adjusted non-GAAP research, development and engineering

$

9,694

$

8,395

General and administrative

$

68,849

$

66,347

Plus:

Share based compensation (1)

(2,947

)

(1,898

)

Acquisition related integration costs (2)

(7,699

)

(13,940

)

Amortization (4)

(25,906

)

(23,322

)

Tax benefit from prior years (5)

1,900

—

Adjusted non-GAAP general and administrative

$

34,197

$

27,187

Interest expense, net

$

10,400

$

11,005

Plus:

Acquisition related integration costs (2)

(8

)

—

Interest costs (3)

(1,448

)

(2,567

)

Tax benefit from prior years (5)

171

—

Adjusted non-GAAP interest expense, net

$

9,115

$

8,438

Income Tax Provision

$

15,041

$

6,966

Plus:

Share based compensation (1)

2,337

1,009

Acquisition related integration costs (2)

4,193

5,085

Interest costs (3)

2,298

1,168

Amortization (4)

6,080

6,055

Tax (expense) benefit from prior years (5)

(497

)

3,770

Adjusted non-GAAP income tax provision

$

29,452

$

24,053

Total adjustments

$

(29,046

)

$

(27,630

)

GAAP earnings per diluted share

$

0.89

$

0.72

Adjustments *

$

0.61

$

0.60

Adjusted non-GAAP earnings per diluted share

$

1.49

$

1.29

* The reconciliation of net income per share from GAAP to
Adjusted non-GAAP may not foot since each is calculated independently.

The Company discloses Adjusted non-GAAP Earnings Per Share ("EPS") as a
supplemental non-GAAP financial performance measure, as it believes it
is a useful metric by which to compare the performance of its business
from period to period. The Company also understands that this Adjusted
non-GAAP measure is broadly used by analysts, rating agencies and
investors in assessing the Company's performance. Accordingly, the
Company believes that the presentation of this Adjusted non-GAAP
financial measure provides useful information to investors.

Adjusted non-GAAP EPS is not in accordance with, or an alternative to,
net income per share and may be different from non-GAAP measures with
similar or even identical names used by other companies. In addition,
this Adjusted non-GAAP measure is not based on any comprehensive set of
accounting rules or principles. This Adjusted non-GAAP measure has
limitations in that it does not reflect all of the amounts associated
with the Company's results of operations determined in accordance with
GAAP.

j2 GLOBAL, INC.

RECONCILIATION OF GAAP TO ADJUSTED NON-GAAP FINANCIAL MEASURES

TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015

(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Non-GAAP net income is GAAP net income with the following
modifications, net of tax: (1) elimination of share-based
compensation and the associated payroll tax expense; (2) elimination
of certain acquisition-related integration costs; (3) elimination of
interest costs in excess of the coupon rate associated with the
convertible notes; (4) elimination of amortization of patents and
intangible assets that we acquired; (5) elimination of additional
tax or indirect tax related (expense) benefit from prior years; (6)
sale of investments; and (7) IRS consulting fee

Twelve Months Ended December 31,

2016

2015

Cost of revenues

$

147,100

$

122,958

Plus:

Share based compensation (1)

(436

)

(373

)

Acquisition related integration costs (2)

—

(327

)

Amortization (4)

(5,380

)

(3,376

)

Adjusted non-GAAP cost of revenues

$

141,284

$

118,882

Sales and marketing

$

206,871

$

159,009

Plus:

Share based compensation (1)

(1,782

)

(2,435

)

Acquisition related integration costs (2)

(5,859

)

(1,110

)

Adjusted non-GAAP sales and marketing

$

199,230

$

155,464

Research, development and engineering

$

38,046

$

34,329

Plus:

Share based compensation (1)

(904

)

(863

)

Acquisition related integration costs (2)

(997

)

(81

)

Adjusted non-GAAP research, development and engineering

$

36,145

$

33,385

General and administrative

$

239,672

$

205,137

Plus:

Share based compensation (1)

(10,528

)

(8,122

)

Acquisition related integration costs (2)

(11,926

)

(23,930

)

Amortization (4)

(95,561

)

(73,902

)

Tax benefit (expense) from prior years (5)

1,000

(3,651

)

IRS consulting fee (7)

—

204

Adjusted non-GAAP general and administrative

$

122,657

$

95,736

Interest expense, net

$

41,370

$

42,458

Plus:

Acquisition related integration costs (2)

(8

)

—

Interest costs (3)

(7,186

)

(7,982

)

Tax benefit (expense) from prior years (5)

171

(472

)

Adjusted non-GAAP interest expense, net

$

34,347

$

34,004

Other expense (income), net

$

(10,243

)

$

5

Plus:

Tax benefit from prior years (5)

811

—

Sale of investments (6)

7,540

—

Adjusted non-GAAP other expense (income), net

$

(1,892

)

$

5

Income tax provision

$

59,000

$

23,283

Plus:

Share based compensation (1)

5,052

3,380

Acquisition related integration costs (2)

6,226

8,880

Interest costs (3)

3,719

2,471

Amortization (4)

27,919

21,672

Tax (expense) benefit from prior years (5)

(462

)

20,681

Sale of investments (6)

(2,865

)

—

IRS consulting fee (7)

—

(47

)

Adjusted non-GAAP income tax provision

$

98,589

$

80,320

Total adjustments

$

(91,456

)

$

(69,383

)

GAAP earnings per diluted share

$

3.13

$

2.73

Adjustments *

$

1.92

$

1.46

Adjusted non-GAAP earnings per diluted share

$

4.99

$

4.17

* The reconciliation of net income per share from GAAP to
Adjusted non-GAAP may not foot since each is calculated independently.

The Company discloses Adjusted non-GAAP Earnings Per Share ("EPS") as a
supplemental non-GAAP financial performance measure, as it believes it
is a useful metric by which to compare the performance of its business
from period to period. The Company also understands that this Adjusted
non-GAAP measure is broadly used by analysts, rating agencies and
investors in assessing the Company's performance. Accordingly, the
Company believes that the presentation of this Adjusted non-GAAP
financial measure provides useful information to investors.

Adjusted non-GAAP EPS is not in accordance with, or an alternative to,
net income per share and may be different from non-GAAP measures with
similar or even identical names used by other companies. In addition,
this Adjusted non-GAAP measure is not based on any comprehensive set of
accounting rules or principles. This Adjusted non-GAAP measure has
limitations in that it does not reflect all of the amounts associated
with the Company's results of operations determined in accordance with
GAAP.

Non-GAAP Financial Measures

To supplement its condensed consolidated financial statements, which are
prepared and presented in accordance with US GAAP, the Company uses the
following Non-GAAP financial measures: Adjusted EBITDA, Adjusted
non-GAAP net income, and Adjusted non-GAAP diluted EPS (collectively the
"Non-GAAP financial measures"). The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and
presented in accordance with U.S. GAAP. The Company uses these Non-GAAP
financial measures for financial and operational decision making and as
a means to evaluate period-to-period comparisons. The Company believes
that they provide useful information about core operating results,
enhance the overall understanding of past financial performance and
future prospects, and allow for greater transparency with respect to key
metrics used by management in its financial and operational decision
making.

(1) Share Based Compensation. The Company excludes stock-based
compensation because it is non-cash in nature and because the Company
believes that the Non-GAAP financial measures excluding this item
provide meaningful supplemental information regarding operational
performance. The Company further believes this measure is useful to
investors in that it allows for greater transparency to certain line
items in its financial statements. In addition, excluding this item from
the Non-GAAP measures facilitates comparisons to historical operating
results and comparisons to peers, many of which similarly exclude this
item.

(2) Acquisition Related Integration Costs. The Company excludes
certain acquisition and related integration costs such as severance,
lease terminations, retention bonuses and other acquisition-specific
items. The Company believes that the Non-GAAP financial measures
excluding this item provide meaningful supplemental information
regarding operational performance. In addition, excluding this item from
the Non-GAAP measures facilitates comparisons to historical operating
results and comparisons to peers, many of which similarly exclude this
item.

(3) Interest Costs. In June 2014, the Company issued $402.5
million aggregate principal amount of 3.25% convertible senior notes. In
accordance with GAAP, the Company separately accounts for the value of
the liability and equity features of its outstanding convertible senior
notes in a manner that reflects the Company's non-convertible debt
borrowing rate. The value of the conversion feature, reflected as a debt
discount, is amortized to interest expense over time. Accordingly, the
Company recognizes imputed interest expense on its convertible senior
notes of approximately 5.8% in its income statement. The Company
excludes the difference between the imputed interest expense and the
coupon interest expense of 3.25% because it is non-cash in nature and
because the Company believes that the Non-GAAP financial measures
excluding this item provide meaningful supplemental information
regarding core operational performance. In addition, excluding this item
from the Non-GAAP measures facilitates comparisons to historical
operating results and comparisons to peers, many of which similarly
exclude this item.

(4) Amortization. The Company excludes amortization of patents
and acquired intangible assets because it is non-cash in nature and
because the Company believes that the Non-GAAP financial measures
excluding this item provide meaningful supplemental information
regarding operational performance. In addition, excluding this item from
the Non-GAAP measures facilitates comparisons to historical operating
results and comparisons to peers, many of which similarly exclude this
item.

(5) Tax Benefits from Prior Years. The Company excludes certain
income tax-related items in respect of income tax audit settlements and
their related FIN 48 accrual reversals. The Company believes that the
Non-GAAP financial measures excluding this item provide meaningful
supplemental information regarding operational performance. In addition,
excluding this item from the Non-GAAP measures facilitates comparisons
to historical operating results.

(6) Gain on Sale of Investment. The Company excludes the gain on
sale of its strategic equity investment in Carbonite, Inc. The Company
believes that the Non-GAAP financial measures excluding this item
provide meaningful supplemental information regarding operational
performance. In addition, excluding this item from the Non-GAAP measures
facilitates comparisons to historical operating results.

The Company presents Adjusted non-GAAP Cost of Revenues, Adjusted
non-GAAP Research, Development and Engineering, Adjusted non-GAAP Sales
and Marketing, Adjusted non-GAAP General and Administrative, Adjusted
non-GAAP Interest Expense, Adjusted non-GAAP Other Expense (Income),
Adjusted non-GAAP Income Tax Provision and Adjusted non-GAAP Net Income
because the Company believes that these provide useful information about
our operating results and enhance the overall understanding of past
financial performance and future prospects.

j2 GLOBAL, INC.

NET INCOME TO ADJUSTED EBITDA RECONCILIATION

THREE MONTHS AND TWELVE MONTHS ENDED DECEMBER 31, 2016 AND 2015

(UNAUDITED, IN THOUSANDS)

The following table sets forth a reconciliation of Adjusted EBITDA
to net income, the most directly comparable GAAP financial measure.

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Net income

$

43,158

$

35,467

$

152,439

$

133,636

Plus:

Interest expense, net

10,400

11,005

41,370

42,458

Other expense (income), net

(438

)

(384

)

(10,243

)

5

Income tax expense

15,041

6,966

59,000

23,283

Depreciation and amortization

33,522

29,578

122,091

93,213

Reconciliation of GAAP to Adjusted non-GAAP financial measures:

Share-based compensation and the associated payroll tax expense

3,703

2,851

13,650

11,793

Acquisition-related integration costs

12,973

14,663

18,782

25,448

Indirect tax (benefit) expense from prior years

(1,900

)

—

(1,000

)

3,651

IRS consulting fee

—

—

—

(204

)

Adjusted EBITDA

$

116,459

$

100,146

$

396,089

$

333,283

Adjusted EBITDA as calculated above represents earnings before interest
and other expense, net, income tax expense, depreciation and
amortization and the items used to reconcile GAAP to Adjusted non-GAAP
financial measures, including (1) share-based compensation, (2) certain
acquisition-related integration costs, (3) additional indirect tax
(benefit) expense from prior years, and (4) IRS consulting fee. We
disclose Adjusted EBITDA as a supplemental non-GAAP financial
performance measure as we believe it is a useful metric by which to
compare the performance of our business from period to period. We
understand that measures similar to Adjusted EBITDA are broadly used by
analysts, rating agencies and investors in assessing our performance.
Accordingly, we believe that the presentation of Adjusted EBITDA
provides useful information to investors.

Adjusted EBITDA is not in accordance with, or an alternative to, net
income, and may be different from non-GAAP measures used by other
companies. In addition, Adjusted EBITDA is not based on any
comprehensive set of accounting rules or principles. This Adjusted
non-GAAP measure has limitations in that it does not reflect all of the
amounts associated with the Company's results of operations determined
in accordance with GAAP.

j2 GLOBAL, INC.

NON-GAAP FINANCIAL MEASURES

(UNAUDITED, IN THOUSANDS)

Q1

Q2

Q3

Q4

YTD

2016

Net cash provided by operating activities

$

64,524

$

67,528

$

60,488

$

89,847

$

282,387

Less: Purchases of property and equipment

(4,321

)

(4,865

)

(8,261

)

(7,299

)

(24,746

)

Add: Excess tax benefit share-based compensation

264

833

974

200

2,271

Free cash flows

$

60,467

$

63,496

$

53,201

$

82,748

$

259,912

Q1

Q2

Q3

Q4

YTD

2015

Net cash provided by operating activities

$

45,716

$

51,894

$

50,963

$

80,488

$

229,061

Less: Purchases of property and equipment

(2,401

)

(4,554

)

(4,972

)

(5,370

)

(17,297

)

Add: Excess tax benefit (expense) share-based compensation

334

1,770

2,437

(55

)

4,486

Add: IRS settlement*

—

5,753

1,164

—

6,917

Free cash flows

$

43,649

$

54,863

$

49,592

$

75,063

$

223,167

* Free cash flows of $54.9 million and $49.6 million for Q2 2015 and Q3
2015, respectively, were before the effect of payments associated with
taxes for prior periods under audit.

The Company discloses Free Cash Flows as supplemental Non-GAAP financial
performance measure, as it believes it is a useful metric by which to
compare the performance of its business from period to period. The
Company also understands that this Non-GAAP measure is broadly used by
analysts, rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the presentation of
this Non-GAAP financial measure provides useful information to investors.

Free Cash Flows is not in accordance with, or an alternative to, Cash
Flows from Operating Activities, and may be different from Non-GAAP
measures with similar or even identical names used by other companies.
In addition, the Non-GAAP measure is not based on any comprehensive set
of accounting rules or principles. This Non-GAAP measure has limitations
in that it does not reflect all of the amounts associated with the
Company's results of operations determined in accordance with GAAP.